8-KOther EventsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Corporate Update (Aug 3, 2020)

Filed August 3, 2020For Securities:EPDEPDU

Summary

Enterprise Products Partners L.P. (EPD) announced the public offering of new senior notes totaling $1.25 billion. This offering includes $250 million of 2.800% senior notes due 2030, which represent a re-opening of an existing series, and $1.0 billion of 3.200% senior notes due 2052. These notes are guaranteed by EPD and issued by its subsidiary, Enterprise Products Operating LLC (EPO). The net proceeds from this offering are intended for general company purposes, including growth capital investments and the repayment of debt, potentially including EPO's $750 million senior notes maturing in February 2021. This debt issuance indicates EPD's ongoing capital management strategy and its commitment to funding future growth and managing its debt obligations. Investors should note the specific interest rates and maturity dates for the new notes, as well as the intended use of proceeds, which suggests continued investment in the business and proactive management of its balance sheet. The offering is scheduled to close on August 7, 2020.

Key Highlights

  • 1EPD is raising $1.25 billion through the issuance of new senior notes.
  • 2The offering consists of $250 million of 2.800% senior notes due 2030 and $1.0 billion of 3.200% senior notes due 2052.
  • 3The new notes are guaranteed by Enterprise Products Partners L.P. and issued by its subsidiary, Enterprise Products Operating LLC (EPO).
  • 4Proceeds will be used for general corporate purposes, including growth capital investments.
  • 5A portion of the proceeds may be used to repay EPO's $750 million senior notes maturing in February 2021.
  • 6The closing of the offering is scheduled for August 7, 2020.
  • 7EPD also issued a press release on July 30, 2020, related to this debt offering.

Frequently Asked Questions

The net proceeds from this offering are intended for general company purposes, which include funding growth capital investments and repaying debt. Notably, a portion of the proceeds may be used to repay Enterprise Products Operating LLC's $750 million senior notes that mature in February 2021.

The offering includes $250 million principal amount of 2.800% senior notes due 2030 (a re-opening of an existing series) and $1.0 billion principal amount of 3.200% senior notes due 2052. These notes are guaranteed by Enterprise Products Partners L.P.

This issuance demonstrates EPD's strategy to access capital markets for ongoing operational needs and future growth projects. It also reflects proactive debt management, potentially refinancing upcoming maturities and securing long-term funding.

The filing notes that certain underwriters or their affiliates may hold the Senior Notes TT that are intended to be repaid with the proceeds from this offering. Consequently, they may receive a substantial portion of the net proceeds. Additionally, underwriters and their affiliates have performed and may continue to perform various financial and investment banking services for EPD, for which they receive customary fees.